Personal Loan Vs Business Loan

What is a Flexi-Personal Loan? How Does It Work?


What is a Flexi-Personal Loan? How Does It Work?


What is a Flexi-Personal Loan


Financial emergencies arrive without prior announcement. If you are caught off-guard, they may cause a huge dent in your finances. Not everyone is prepared to deal with such emergencies, and many are compelled to take credit to cover these emergency expenses.

Banks and financial institutions offer personal loans to help you sail through the tough situation smoothly. A Flexi-personal loan is a type of personal loan which is a little different from traditional personal loans. Unlike a traditional personal loan, the loan amount is offered to you as a personal line of credit.


What is a Flexi-Personal Loan?


A Flexi-personal loan is a type of personal loan that allows quick access to funds. It has a pre-approved credit limit, which you can use for any purpose, as and when you need it.


Features of Flexi-Personal Loan


No Collateral Required – Get a Flexi-personal loan without providing collateral or security to your lender.

24/7 Access to Funds – You can withdraw funds from your pre-approved limit as per your requirement at any time.

Flexible Repayment – The borrowed amount can be repaid in monthly EMIs over a flexible loan tenure. With some lenders, you can pay just the interest as your EMI in the first year.

Multiple Withdrawals – You can withdraw funds as and when you require, up to your approved credit limit as many times you want, without the need for additional documentation or a new loan application.

Save on Interest – One of the biggest benefits of a Flexi-personal loan is that you need to pay interest only on the amount you used from your pre-approved credit limit.


How does a Flexi-Personal loan work?


Once you apply for a Flexi-personal loan, your lender decides on a loan amount limit after assessing your creditworthiness. This pre-approved credit limit is offered to you as a Flexi-personal loan. You can withdraw funds as and when you need within your approved credit limit as many times as you want. The interest will be charged only on the amount you withdraw. The unused amount from the credit limit does not accrue any interest.


Eligibility Criteria


Any salaried or self-employed individual can apply for a Flexi-personal loan, although the eligibility criteria may vary across lenders and as per your credit profile. Some factors lenders consider when evaluating flex-personal loan applications include:


  • Age
  • Income
  • Employment type
  • Job/business continuity
  • Existing financial liabilities


Additionally, your lender will also check your credit score to decide whether or not to approve a loan. A credit score of 750 and above is ideal for getting your loan approved at better loan terms and lower interest rates.


Required Documents – Some of the common documents needed to get a Flexi-personal loan include:

Identity Proof – Aadhaar Card/ PAN Card/ Driving License/ Voter’s ID/Passport

Address Proof – Utility Bill (not more than 3 months old)/ Aadhaar Card/Lease/Property Purchase Agreement/ Driving License/ Bank Account Statement/Passport


Income Proof


  • Salaried Individuals – Form 16/ Salary Slips/Bank Account Statement
  • Self-employed Individuals – Previous Years’ ITR/ Bank Account Statement/P&L Statement and Balance Sheet
  • Business Proof (for self-employed individuals & professionals): GST Registration and Filing Documents/ Certificate of Practice/Partnership Deed/ Shop Act License/ MOA & AOA


Note: The above is a general document list. The lender may or may not ask for more documents depending on the applicant’s profile. 

Want to know an easier way to get a Flexi-personal loan? With its easy-to-meet eligibility criteria and minimal documentation, MoneyTap offers instant Flexi-personal loans for all your financial needs.

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